The Tax on Income & Tax Savings

As we heading towards the end of financial year 2012-2013, there is no room for procrastination now. If you do not plan your taxes

now, you will end up paying a hefty sum.

As a late planner, you will not get the maximum benefits from tax-savings instruments due to the notional loss in investment, but you can minimize the damage. For most of the people “Tax-Saving” brings to mind life insurance, Equity-linked saving scheme, NSC etc. under section 80-C of the Income-Tax Act. An individual can claim tax deductions of upto Rs. 2 lakh under 80C.

Small piece of advice:- These are the widely used investment plans now a days. If you are a risk taker then go for 100% MF, if you are a moderate risk taker then go for 60% MF, 20% PPF and 20% FD and if you do not want any risk then go for 100% PPF, FD and/or NSC.